Experience + Knowledge = Client Power

Experience + Knowledge = Client Power

McBride Real Estate services//vision & SERVICES VISION & SERVICES McBride Real Estate Services is, first and foremost, a Tenant Representation firm whose services go far beyond simply finding space and negotiating transactions. Rather, we endeavor to serve our clients as an extension of their organization. As our clients de facto facilities department, McBride provides a full complement of real estate services to support all of their commercial real estate related needs. These include: representing our clients in the acquisition and disposition of leased and owned facilities, lease audits, lease administration, strategic planning, reviewing operating expenses and project management for a variety of real estate projects. McBride s clients enjoy the benefit of our proprietary online services and analytical tools and take comfort in the fact that we do not represent landlords. TENaNT RepRESENTaTION Tenant representation is the heart of the services provided by McBride. Whether we re assisting a client in a renewal or relocation of their leased facilities, or advising clients how to maximize their leverage, we are constantly looking for ways to create value for our clients. In any assignment, our mission is to protect our clients best interests, while advancing their business objectives. Tenant Representation services include acquiring and disposing of leased and owned facilities, lease renegotiation, expansion negotiation, subleasing and consulting. We consistently enjoy the honor of being selected by leading corporations, law firms, non-profits and associations to represent their interests. LeaSE NegOTIaTION The lease is the codifying document for any rental transaction. Therefore, it is crucial that the hard fought concessions negotiated in a letter of intent remain undiluted in the final version of the lease. McBride plays a critical role in ensuring that our clients achieve the most favorable lease terms. LeaSE RENEwal McBride s principals have been on the forefront of lease renewal strategies since the early 1980s. Our programmed approach levels the playing field and creates significant value for our clients. In order to create maximum leverage, relocation options must be considered and used as leverage in negotiations. Our process allows our clients to keep their rental rate below market and to share in the savings the landlord realizes in the event of a renewal. SaLES Many of our clients wish to explore purchasing a building rather than continuing to lease. McBride has built an impressive track record of helping clients buy or sell offices in a variety of shapes and sizes. Likewise, we have assisted many other clients in reviewing the benefits and drawbacks of leasing versus owning. Towards that end, we have developed a proprietary financial analysis for our clients to compare the costs of leasing versus owning. we LIVE To Fight FOR Our CLIENTS The McBride mission is to provide real estate solutions that champion our clients objectives. We are not your typical brokerage firm, rather, we are a flexible organization driven to provide our clients with customized solutions, industry leading analytical tools, access to the best professionals for every phase of a project and the personal attention of the company s principals. ExCLuSIVELy SENIOR BROkERS = No weak LINks The McBride team is comprised of purely senior brokers with complementary skill sets. Our principals backgrounds include work in the legal, political, financial, construction and architecture sectors. The McBride team averages 15 years of experience representing tenants in lease negotiations. CuSTOmized analysis = CLIENT FOCuSEd SuCCESS In a world of pre-programmed, canned analysis, McBride provides clients with the highest level of analytical service available within the real estate industry. We study our clients to understand their core processes and objectives then customize our proprietary financial analysis to evaluate the most critical elements of the project. Our client-focused analytical approach is the driving reason why clients select McBride to represent their business, ranging from small non-profit organizations to foreign governments, to Fortune 50 corporations. We encourage you to contact our references. Our demonstrated ability to consistently provide the highest level of service is a key reason for our success.

OFFICE LEASE PROCESS STAGE EVENT BENEFIT CLIENT COMMITMENT DELIVERABLE Select Project Team McBride becomes an 1 extension of Client s organization Needs Analysis Customize a strategy 2 which plays your strengths against the weakness of the market. Review Market Options View market options 3 and put client in play to create a Competitive Dynamic. Tour Selected Buildings Engagement Letter Interview Client s leadership, review current lease and related information. Participate in touring. Project Timeline, Executed Engagement Letter McBride Space Calculator, Written summary of Status Quo and Needs. Site Survey and Property Tour. 4 Preliminary Proposals Solicited and Received Create an all things being equal view of client s options. Review and feedback. Financial Analyses. 3 Finalists Selected Preliminary Analyses Completed 5 Preliminary Test Fits Completed Analysis of architectural efficiency and construction costs. Review and feedback. Construction budget and timeline. Preliminary Construction Budgets Completed Select Primary & Secondary Options 6 Letter of Intent for Primary Option Fully Negotiated Realize most favorable terms = Create Value Decisive decision making. Best & Final Analysis. Analysis of Final Terms Completed 7 Lease Negotiation Capture and retain value created in the LOI Decisive decision making. Lease Comments and Abstract. Lease Execution & Abstract Completed 8 M.E.P. (Construction) Drawings Maximize the value of negotiated terms, eliminate hassle. Remain engaged in overseeing the final steps of the process. Construction Budget, Timeline and Online Management Facilities. Pricing Permits Buildout Move (if necessary) Additional Improvements Ordered (if necessary)

OFFICE LEASE RENEWAL/RELOCATION SCHEDULE Jan Feb Mar Apr May Jun July Aug Sep Oct Nov Dec Jan EVENT Start 30 60 90 120 150 180 210 240 270 300 330 360 Select Project Team Needs Analysis Review Market Options Tour Selected Buildings Preliminary Proposals Solicited and Received 3 Finalists Selected Preliminary Construction Budgets Completed Preliminary Test Fits Completed Preliminary Analyses Select Primary & Secondary Options Letter of Intent for Primary Option Fully Negotiated Lease Negotiation Lease Execution M.E.P. (Construction) Drawings Pricing Permits Buildout Move (if necessary) Additional Improvements Ordered (if necessary)

ARCHITECTURAL management SERVICES McBride Real Estate Services partners with architecture firms in the region to provide architectural services to our clients. After assisting our client in selecting the best architect for their needs, we guide our clients through the design process to ensure that each of the spaces under consideration provide the maximum utility. We make sure that our clients goals are realized by ensuring the project never loses sight of the client s vision and business objectives. The space must be well designed and aesthetically appealing, but also have the greatest possible efficiencies to reduce costs. Analyzing potential buildings for space efficiencies many times translates into a 10-20% savings for our clients when comparing one site against another. This skill and service is just one of many nuances in the real estate decision making process that save our clients money and time.

BUILDING 1501 M Street 1399 NY Ave 101 Constitution Ave 1101 New York Avenue 901 K Street BUILDING SIZE 230,035 200,000 300,000 250,000 275,000 FLOOR(S) PROPOSED 10th 3rd 2nd 4th 8th RENTABLE SQUARE FEET 10,000 9,500 10,200 8,950 10,000 # OF EMPLOYEES 30 30 30 30 30 lease TERM 5 5 5 5 5 COMMENCE DATE 1-Apr-11 1-Apr-11 1-Apr-11 1-Apr-11 1-Apr-11 INITIAL RATE ($/sf) $55.00 $50.00 $75.00 $45.00 $47.50 Full Service or NNN Full Service NNN Full Service NNN NNN estimated 2011 Base Year 2011 Base Year 2011 Base Year 2011 Base Year 2011 Base Year TOtal OP EXP & taxes $25.00 $33.02 $24.25 $24.50 $25.00 Estimated FUll service rate $55.00 $83.02 $75.00 $69.50 $72.50 ANNUAL ESCALATION 2.5% fixed 2.8% fixed 3.0% fixed 2.5% fixed 2.5% fixed RENTAL ABATEMENT: YEAR 1 (months) 1 3 0 2 4 YEAR 2 (months) 0 0 0 0 0 Full Service or NNN Full Service NNN Full Service NNN NNN OVERTIME HVac COST ($/HOUR) est. OVERTIME HOURS/YEAR IMPROVEMENT ALLOWANCE $ PER SQ FT $50.00 $85.00 $60.00 $75.00 $100.00 RENTAL COSTS CONSTANT COST/SF/YR $89.11 $89.03 $80.58 $74.76 $77.93 CONSTANT COST/YEAR $286,682 $445,168 $362,599 $366,343 $377,985 CONSTANT COST/EMPLOYEE $28,668 $44,517 $36,260 $36,634 $37,798 TOtal GROSS RENTAL $1,441,693 $2,238,595 $1,823,606 $1,842,623 $1,901,069 PARKING ($/MONTH/SPace) N/A 1:1,500 1:1,500 1:1,500 1:1,500 HVac HOURS 8-6 M-F / 9-1 sat 8-6 M-F / 9-1 sat 8-6 M-F / 9-1 sat 8-6 M-F / 9-1 sat 8-6 M-F / 9-1 sat TERMINATION OPTION TBD TBD TBD TBD TBD

POINTS TO NEGOTIATE As is noted in the Office Lease Process table, the critical terms of a lease agreement are negotiated in the Letter of Intent, prior to the lease negotiation. At that moment our clients hold the highest degree of leverage over the landlord, making it the optimum time to extract our final concessions. Just as importantly, once the Letter of Intent has been completed, we work diligently with our clients legal counsel to make sure all of the concessions negotiated are incorporated into the lease. Below is a sampling of some of the lease issues and points we negotiate on our clients behalf. Premises Base Rental Rental Abatement Real Estate Taxes and Operating Expenses Base Rental Adjustment Initial Lease Term Option to Terminate Lease Commencement Delivery of Premises Tenant Plans Build out Allowances General Contractor Mark-ups Competitive Bidding Construction Management Fees Tenant s Contractor(s) Design and Construction Schedule Early Possession for Tenant Fit-Up Pre-commencement Expansion Option to Contract Options to Extend Term Right of First Offering Green Lease Issues Moving Related Expenses Re-painting/Re-carpeting Storage Space Agreement Subleasing and Assignment Security Deposit Signage Roof Rights Non-Disturbance/Quiet Enjoyment Parking Building Directory Cleaning Services Access Security Heating, Ventilation and Air Conditioning Holidays Current Lease Obligation Hazardous Materials Representation Air Quality Personal Liability Waiver leed certification

Project management approach Once the lease terms are negotiated and the lease is signed, many of our competitors feel that their role is complete and they move on to the next transaction. This leaves the client without any assistance in dealing with a myriad of issues related to their new lease, including construction of their space, it systems, moving and building management issues. The McBride team has made a commitment to ourselves and our clients to provide the highest level of service in the industry. As our clients de facto facilities department, we go above and beyond traditional brokerage services by transforming our team into an extension of our client s organization. We remain active throughout the term of the lease from participating in all construction meetings to reviewing operating expenses and the building s management services. PROcess ORGANIZatiON CHart CLIENT PrOPerty Manager MOVers LANdlOrd BROKer IT ARCHitect ENGINeers CONtractOR FURNitUre LEGal

CONSTRUCTION management McBride s construction management services ensures that our client s construction projects remain within budget and are completed on time. By engaging third party project management, our clients have the ability to scale services to be as broad or as limited as their needs dictate. Quality construction management services, engaged early in the process, not only saves our clients money by competition amongst multiple bidding contractors, but also ensures that the project never loses sight of our client s objectives. Pre-dESIgn PhaSE Architect / Engineer Selection / Contract Negotiation Site / Building Evaluations Budget Development Master Schedule OuTCOmES Appropriate Architect Suitable Building Realistic Budget Accurate Schedule Design PhaSE Project & Schedule Control Cost Estimating Value Engineering Planning Concepts / Alternatives Analysis Early Procurement Advice Design Documents Review OuTCOmES Imaginative & Efficient Design Design in line with Budget Ddrawings & Specifications that clearly depict required work Bid PhaSE Contracting Strategy Contractor Pre-qualification Contractor Request for Proposal Pre-bid Conference OuTCOmES The Most Qualified Contractor Eengaged under Competitive Agreement CONSTRuCTION PhaSE Schedule Control Quality Control Cost Control Correspondence Review / Response Change Order Evaluations Submittals Control Payment Application Control Substantial Completion OuTCOmES Appropriate Architect Suitable Building Realistic Budget Accurate Schedule

OperaTINg Expense REVIEw & AudIT SERVICES McBride provides its clients lease expense reviews on an annual basis. The purpose of this service is to verify that the client is paying its proper rent, operating expense and real estate tax pass-throughs. The McBride team negotiates the lease operating provisions and exclusions, therefore, and it is our obligation to see that the calculations are being done correctly. Should we believe that a landlord has improperly charged for operating expenses, we ll review the oversight with the landlord and request a refund. If necessary, we will provide a comprehensive audit of the building s operating and real estate tax expenses. The McBride team performing lease audit services includes CPA s and MBA s. Do YOU have a QUestiON about YOUr rental invoice or OPeratiNG expense passthroughs? Lease AdministratiON Electronic files system for lease documents, cad drawings and LOIs Review of Operating Expense Pass-Throughs All lease data extracted, analyzed and evaluated Flexible Software Platform